Correlation Between Suzhou Weizhixiang and CITIC Metal
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By analyzing existing cross correlation between Suzhou Weizhixiang Food and CITIC Metal Co, you can compare the effects of market volatilities on Suzhou Weizhixiang and CITIC Metal and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Suzhou Weizhixiang with a short position of CITIC Metal. Check out your portfolio center. Please also check ongoing floating volatility patterns of Suzhou Weizhixiang and CITIC Metal.
Diversification Opportunities for Suzhou Weizhixiang and CITIC Metal
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Suzhou and CITIC is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Suzhou Weizhixiang Food and CITIC Metal Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CITIC Metal and Suzhou Weizhixiang is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Suzhou Weizhixiang Food are associated (or correlated) with CITIC Metal. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CITIC Metal has no effect on the direction of Suzhou Weizhixiang i.e., Suzhou Weizhixiang and CITIC Metal go up and down completely randomly.
Pair Corralation between Suzhou Weizhixiang and CITIC Metal
Assuming the 90 days trading horizon Suzhou Weizhixiang Food is expected to generate 2.34 times more return on investment than CITIC Metal. However, Suzhou Weizhixiang is 2.34 times more volatile than CITIC Metal Co. It trades about 0.08 of its potential returns per unit of risk. CITIC Metal Co is currently generating about -0.1 per unit of risk. If you would invest 2,150 in Suzhou Weizhixiang Food on August 27, 2024 and sell it today you would earn a total of 104.00 from holding Suzhou Weizhixiang Food or generate 4.84% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Suzhou Weizhixiang Food vs. CITIC Metal Co
Performance |
| Timeline |
| Suzhou Weizhixiang Food |
| CITIC Metal |
Suzhou Weizhixiang and CITIC Metal Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Suzhou Weizhixiang and CITIC Metal
The main advantage of trading using opposite Suzhou Weizhixiang and CITIC Metal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Suzhou Weizhixiang position performs unexpectedly, CITIC Metal can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in CITIC Metal will offset losses from the drop in CITIC Metal's long position.| Suzhou Weizhixiang vs. China Petroleum Chemical | Suzhou Weizhixiang vs. PetroChina Co Ltd | Suzhou Weizhixiang vs. China State Construction | Suzhou Weizhixiang vs. China Railway Group |
| CITIC Metal vs. Zijin Mining Group | CITIC Metal vs. Wanhua Chemical Group | CITIC Metal vs. Baoshan Iron Steel | CITIC Metal vs. Shandong Gold Mining |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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